Bond Funds Post Record $80 Billion in Redemptions in 2013
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Bond mutual funds in the U.S. posted record investor withdrawals of $80 billion this year as investors fled fixed income in anticipation that interest rates will rise further.
The redemptions, which were through Dec. 23, represented 2.3 percent of bond-fund assets, Brian Reid, chief economist at Washington-based Investment Company Institute, said today in a telephone interview. The previous annual record for redemptions from bond funds was in 1994, when investors pulled about $62 billion in the full year, or 10 percent of assets, as interest rates rose, according to ICI.